Wabash National Corporation · NYSE:WNC
Wabash National — 2005 Deutsche Bank Transportation Conference
27 slides from Wabash National's conference presentation, Feb 17, 2005
Slide 1: 2005 Deutsche Bank Transportation Conference
(r) 2005 Deutsche Bank Transportation Conference February 17, 2005 William P. Greubel - President & CEO Robert J. Smith - Sr. Vice President, CFO
Slide 2: Forward-Looking Statements
This presentation will contain certain forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are, however, subject to certain risks and uncertainties that could cause actual results to differ materially from those implied by
Slide 3: Management Presenters
Bill Greubel President and CEO Bob Smith Sr. Vice President, CFO Management Presenters
Slide 4: Highlights
Highlights Trailer cycle will extend beyond 2007 - significant demand WNC growth driven by cycle and successful mid-market share improvement DuraPlate(r) market share > 25% van market Raw material pricing leveling Recovered approximately 90% of material cost increases Retail/branch operations: furth
Slide 5: Our Commitment: Attain Operational Excellence & Financial Strength
Achieve operating results Diversify and grow customer base Prepare for all industry cycle dynamics Continue structural margin improvement Grow earnings and cash flow Strengthen balance sheet Our Commitment Attain Operational Excellence & Financial Strength Getting the Job Done!
Slide 6: Freight Tonnage Showing Strength
Freight Tonnage Showing Strength Continued economic strength should keep freight volumes growing ATA's Truck Tonnage Index (Seasonally Adjusted; 1993=100) Truck Tonnage 1/1/2000 150 2/1/2000 149 3/1/2000 143 4/1/2000 137.5 5/1/2000 137 6/1/2000 140 7/1/2000 139 8/1/2000 138 9/1/2000 139 10/1/2000 13
Slide 7: Fleet Survey/Feedback
Fleet Survey/Feedback Facts: Feed-back from over 200 fleets (720,000 units) Of those purchasing, 74% plan on adding capacity by approximately 10% Yes Undecided No 0.76 0.07 0.17 Plans to Purchase Trailers in 2005 Planned 2005 Trailer Purchases Strong demand for both replacement & growth Add Capacity
Slide 8: Net Orders Trending Upward
1/1/2003 4/1/2003 7/1/2003 10/1/2003 1/1/2004 4/1/2004 7/1/2004 10/4/2005 1/1/2005 Industry 43.1 48.6 47.3 42.1 81.5 64.6 57.7 55.6 78.2 WNC 10.1 7.2 10 7.1 17.1 10.4 11 12.6 14 Net Orders Trending Upward Units (000's) Units (000's) Source: ACT Research and Company Data ASP up 12 to 20+% Q1 pricing
Slide 9: Positive Industry Momentum
1999 2000 2001 2002 2003 2004 2005E 2006E 2007E 2008E Class 8 Trucks 280722 206555 118682 148236 141429 207458 235393 251662 224150 282673 Total Trailers 318788 275223 140100 142658 183162 234256 269090 272258 289000 281000 Positive Industry Momentum Units Source: ACT Research U.S. Truck & Trailer I
Slide 10: Van Trailer Forecast
Van Trailer Forecast Middle Market initiative will drive increased market share in a growing marketplace Source: Van projections based on ACT Research Industry Production (Units) Trailer Replacement Dry Vans WNC Market Share Reefers
Slide 11: Leading Product & Innovator - DuraPlate
Proprietary composite trailers offer several advantages vs. standardized equipment Longer trailer life Lower maintenance cost Increased durability Enhanced trade value Leading Product & Innovator - DuraPlate(r) DuraPlate Volume % of Total Units Significant opportunity - 10% penetration of total flee
Slide 12: Enhanced Total Cost of Ownership Differentiates WNC From Competition
The DuraPlate(r) box is essentially maintenance free vs. competition and lasts 2 x's longer Major fleet maintenance issues: Tires & brakes (normal wear) Panel replacement (DuraPlate(r) solves) Corrosion Lights Reduced maintenance equals significant cost savings, increased utilization and revenue gai
Slide 13: Enviable Core Customers
Enviable Core Customers SS peo cach SAFEWAY ned FedEx. YELLOW) U. §. XPRESS SCHN NEI DER. ~ ART
Slide 14: Extending Customer Breadth Into Mid-Market
Others Top 10 Carriers Mid-Market East 0.38 0.11 0.52 Extending Customer Breadth Into "Mid-Market" Source: Eno Transportation Foundation 2000 Top 10 Carriers - 11% (Historic focus) Other - 38% Proven Growth Opportunity in Non-Core Accounts Strategy Works Excellent Growth Engine Softens Trough Mid-ma
Slide 15: Expanding Customer Base
Expanding Customer Base Non-Partner Partner East 0.39 0.61 While growing our overall revenues and continuing to service our largest core partners, Wabash has attracted new customers to diversify and grow its revenue sources Non-Partner Partner East 51 49 Non-Partner Partner East 0.67 0.33 2002 2003
Slide 16: Mid-Market: Early Success Great New Customers
Mid-Market: Early Success Great New Customers
Slide 17: Branch Operations Excellence
The Branch network is a strategic part of Wabash Provides needed service / parts support to Mid-Market Creates outlets for re-sale of used trailer trades Augments factory direct sales to smaller fleets Significant progress has been made $12 million Y-O-Y improvement in operating income Record new tr
Slide 18: Re-Investing in Lower Cost Manufacturing
Re-Investing in Lower Cost Manufacturing Replace four production lines with automated assembly operations Fourth line will move reefer operations into main plant Each line can produce 15,000 trailers per year Savings: improved productivity and quality Projected average annual savings per line: $7.0M
Slide 19: Financial Review
Financial Review
Slide 20: Financial Highlights
Financial Highlights 2004 2003* 2004 Growth Sales $829 M $1,041 M 26% Gross Profit $67 M $126 M 88% GP% 8% 12% 50% Operating Income $14 M $69 M 4x Operating Income % 2% 7% 3x *Proforma to show effort of asset sale and refinancing
Slide 21: Financial Highlights 2004
Financial Highlights 2004 Margins exceeding peak cycle despite commodity price increases Retail results improving Strengthened balance sheet and increased financial flexibility Common stock issuance Amended & extended $125 million revolving credit facility No bank debt currently outstanding Working
Slide 22: Financial Outlook 2005
Financial Outlook 2005 Some margin compression near term Anticipated commodity price increases Customer push-back Retail improvement Mid-market push Eliminated marginal locations 2005 effective tax rate 2% ; 2006 40% Federal NOL $175million at December 31, 2004 Projected 2005 CapEx $25 -35 million;
Slide 23: Multiple Earnings Growth Catalysts
Multiple Earnings Growth Catalysts Income Statement Catalysts Focused on Profitability Improving lengthening cycle Share gain/mid-market Sheet & post and container growth Pricing Continuous improvement - labor & materials Automated assembly Quality excellence Absorption/incremental contribution Comm
Slide 24: Structural Margin Improvement
Structural Margin Improvement Achieving peak margins at only 75% of peak volumes despite commodity price headwinds Source: ACT Research and WNC estimates Automation Commodity Prices
Slide 25: Summary
Summary
Slide 26: Our Commitment
Achieve operating results Diversify and grow customer base Prepare for all industry cycle dynamics Continue structural margin improvement Grow earnings and cash flow Strengthen balance sheet Our Commitment
Slide 27: Slide 27
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